Goldman Sachs Paris-Aligned Climate World Equity UCITS ETF
| Issuer: Goldman Sachs |
| Asset Class: Equity |
| TER: 19bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 13 Oct 2022 |
| Ticker: WRLD |
| ISIN: IE000HPBRE54 |
This investment product provides targeted exposure to a portfolio of global companies from developed markets that are actively contributing to the goals of the Paris Agreement. The strategy is designed for investors who wish to align their core equity holdings with a sustainable, low-carbon future. By tracking a Paris-Aligned Benchmark (PAB), the portfolio aims for a significant reduction in greenhouse gas (GHG) intensity compared to a standard market index. It follows a clear and ambitious decarbonization pathway, making it a robust tool for addressing climate-related transition risks within an investment portfolio and contributing to positive environmental change.
The underlying index employs a multi-faceted methodology to achieve its climate objectives. Initially, it applies stringent exclusions, screening out companies involved in activities deemed harmful, such as the production of fossil fuels, controversial weapons, and tobacco, or those violating global norms. Following these exclusions, the remaining securities are re-weighted. This process favors companies with lower carbon footprints and those that derive significant revenues from green activities, effectively tilting the portfolio towards climate leaders and innovators. This sophisticated approach ensures the portfolio not only meets the technical criteria of the EU PAB regulation but also captures opportunities arising from the global transition to a sustainable economy.
This fund is particularly suitable for long-term, climate-conscious investors seeking a diversified equity solution that integrates environmental considerations at its core. It serves as a foundational building block for a portfolio, offering broad market exposure while actively managing climate risks. The accumulating share class structure, which reinvests all dividends back into the fund, is ideal for those focused on compounding capital growth over time. It allows investors to participate in the performance of leading companies that are best positioned for a net-zero world, without the need to manage dividend income separately.
